The flex segment had a substantial 19.8% share in the annual office leasing numbers in India, its best share underscoring the momentum in this segment, JLL said in its report. It thus became the second biggest occupier segment behind Tech in terms of its contribution to the leasing growth story that underpinned the 2024 office market performance.
Flex has had a meteoric rise in the office ecosystem, with it being the fastest growing sector in terms of its Year-on-Year (Y-o-Y) performance since 2022. The resurgence in this segment since the COVID effect has been nothing short of remarkable. This has been driven by the strong growth of the managed space market even as evolving workplace strategies have supported in mainstreaming of this sector.
"The flex space sector in India has not only met but exceeded expectations, leasing over 15 million sq. ft in 2024 - a new pinnacle that underscores its pivotal role in shaping India's evolving office landscape. With a robust pipeline of IPOs, strong occupancy rates, and significant PE backing, flex space has solidified its position as a long-term player in India's commercial real estate. Our projections indicate that by 2026, the operational footprint of flex space across India's top seven cities will surpass 100 million sq. ft, strengthening its status as a key element of the office market growth story," said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
In 2024, Delhi NCR stole a march over all others with flex operators’ activity hitting an all-time annual high, resulting in the city holding a substantial 42% share in the leasing by the flex segment across the top seven cities. Pune in recent times has emerged as a market witnessing intense expansion by flex operators and it was second with a 14% share, pushing Bengaluru which is the biggest flex ecosystem in the country to the third spot with a 13% share.
"India's flex space market has reached unprecedented heights in 2024, with total stock hitting a staggering 74 million square feet across the top seven cities. Bengaluru leads the charge, commanding a third of the operational flex footprint," said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.
Flex solutions are being evaluated as well as being demanded when occupiers plan their RE strategies. As India’s office market remains growth-oriented and space requirements indicate towards strong expansion-backed demand, flex will play an important role in the long-term office growth story of India as it remains the premier destination as ‘office to the world’.
